: a tax on the net income of an individual or a business
Examples of income tax in a Sentence
Federal income tax will be deducted from your pay.
The new law will lower income taxes for most taxpayers.
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The Amazon founder recently suggested that the bottom half of American earners should pay zero federal income tax.—Kurt Knutsson, FOXNews.com, 6 June 2026 The Alternative Minimum Tax, or AMT, is a sort of parallel tax system that recalculates your income tax using different rules.—Kelly Phillips Erb, Forbes.com, 6 June 2026 After age 73, owners of traditional IRAs or 401(k) accounts are required to make withdrawals from retirement accounts based on the size of the account and the account holder’s age, and all withdrawals are taxable at ordinary income tax rates.—Elliot Raphaelson, The Orlando Sentinel, 5 June 2026 Generally, the child’s unearned income — such as taxable interest, dividends and capital gains — over $2,700 is taxed at the parent’s marginal income tax rate.—Jessica Dickler,greg Iacurci, CNBC, 5 June 2026 See All Example Sentences for income tax